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on Heterodox Microeconomics |
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Issue of 2025–07–21
fifteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Sergio Cesaratto |
| Abstract: | Piero Sraffa, Pierangelo Garegnani, and Luigi Pasinetti undermined the analytical foundations of marginalist price and distribution theories and recovered the surplus approach proper to classical economists. This paper studies the comparative usefulness of, respectively, the marginalist and the modern surplus approaches for the interpretation of pre-capitalistic economies and for the theory of institutions, also in the light of Polanyi’s contribution. With this in mind, the paper examines some recent mainstream contributions concerning the origin of inequality and related institutions. Challenging, they adopt materialist explanations of the origin of inequality and institutions drawn from archaeological studies. On the critical side, these studies reject with poor arguments the classical surplus approach. Moreover, they employ marginalist concepts, in particular the relative scarcity of production factors, to explain the onset of inequality. Those concepts are of a spurious nature, especially once applied to ancient economies. In this respect, the paper refers both to Marx’s and Polanyi’s emphasis on the role of ‘embedded’ rather than market relations in ancient societies, and to Sraffa’s criticism of ‘marginism’ (scarce historical realism) to the marginalist curves related to production (Rosselli and Trabucchi 2019). |
| Keywords: | Origins of inequality, Surplus approach, Marginalism, Samuel Bowles, Sraffa’s Marginism Jel Classification: A12, B51, B52, N01, Z13 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:926 |
| By: | Oliver Brette (INSA, University of Lyon; TRIANGLE, UMR 5206, CNRS); Nathalie Lazaric (GREDEG, CNRS, Université Côte d'Azur, France; University of Gothenburg, Sweden) |
| Abstract: | In the recent decades, circular economy (CE) has attracted increasing interest from public authorities, non-profit organizations, businesses and, more recently, scholars who have proposed a variety of approaches to the concept. This article aims to lay the foundations for an original framework for analyzing CE from the perspective of the evolutionary institutionalism pioneered by Thorstein Veblen. Evolutionary institutionalism is rooted in a systemic and multi-layered ontology. It employs the Darwinian triplet of variation, selection, and retention/replication (VSR) as a fruitful framework for analyzing evolving population systems. Building on this generalized Darwinism framework, the article argues that the transition from a linear economy to a (more) circular economy should be conceived primarily as a co-evolution between business firms and industry architectures. From this perspective, it suggests centering the analysis of the VSR processes of the CE transition on the notion of business model, defined as a system of organizational routines that structures interactions between the members of the firm and the social entities of its industrial environment. |
| Keywords: | circular economy, business model, evolutionary institutionalism, generalized Darwinism |
| JEL: | B52 L20 Q57 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-28 |
| By: | Mark Setterfield (Department of Economics, New School For Social Research, USA) |
| Abstract: | Neoliberalism can be characterized as an exhausted but entrenched growth regime that requires fundamental institutional transformation to create the conditions for inclusive and sustainable growth. But will existing political leadership rise to the challenge of implementing this transition? Experience during and immediately after the COVID- 19 pandemic does not give cause for optimism. First, the pandemic itself could have served as a timely reminder of the need for socialized responses to shared sources of uncertainty. Second, the post-pandemic 'inflation' could have served as a timely reminder of the importance of distributive justice as a component of macroeconomic performance. The argument advanced is that both of these opportunities were missed, demonstrating a paucity of vision and leadership among center-left parties at a critical juncture for liberal democracy. |
| Keywords: | COVID pandemic, inflation, Taylor moment, Authoritarian Neoliberalism, Social Capitalism |
| JEL: | B52 E02 E31 E66 P16 P51 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:new:wpaper:2510 |
| By: | Alberto Bisin; Thierry Verdier |
| Abstract: | In this chapter we survey recent advances in modeling cultural transmission in the economics literature. We first present the basic canonical model of the evolution of cultural traits in the social sciences. Both Economics and Evolutionary anthropology build on this canonical model but their approaches are conceptually very different. After elucidating these differences, we introduce several recent economic models of cultural transmission which address a rich set of novel and interesting questions in the literature. We present these models as extensions of the canonical framework, organized along theoretical dimensions that we categorize as pertaining to preferences and technology. We finally briefly discuss how cultural evolution represents a fundamental component - alongside institutional change - of recent theoretical work on the political economy of long-run growth. We conclude suggesting interesting areas for future research. |
| JEL: | C60 D1 N0 P0 Z10 Z13 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33928 |
| By: | Kothe, Rafael |
| Abstract: | This paper investigates how social network and conformity dynamics shape the stability of inflation expectations and the dissemination of economic narratives. Using an agent-based macroeconomic simulation, I integrate a heuristic switching framework with an opinion dynamics mechanism to examine the impact of targeted narrative dissemination by highly central agents on expectation dispersion. The computational experiments reveal that when influential network actors transmit the central bank's inflation narrative, both inflation rate dispersion and the dispersion of expectations are substantially reduced. Conversely, when distorting narratives spread through these key nodes, it requires very high persuasion levels to significantly amplify instability. Moreover, impulse response analyses show that stronger social influence accelerates convergence toward rational expectations following shocks, thereby mitigating both the magnitude and persistence of deviations. However, heightened persuasion can also weaken the link between expectations and underlying fundamentals, as agents increasingly align with dominant narratives rather than economic signals. Overall, these findings underscore the dual role of social networks in monetary policy communication, capable of both anchoring expectations and amplifying destabilising narratives. |
| Keywords: | Expectations, Economic Narratives, Network Effects, Behavioral Macroeconomics, Agent-Based Modeling, Monetary Policy Communication |
| JEL: | D84 D83 E52 E71 D85 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bamber:319882 |
| By: | Engelbert Stockhammer; Ben Tippet; Karsten Kohler |
| Abstract: | Since the Global Financial Crisis, there is a growing literature on the Comparative Political Economy (CPE) of housing, but it has not systematically incorporated boom-bust cycles in house prices. This matters as cycles in house prices are large relative to their trend and the intensity of house price cycles differs across countries. Bringing Minskyan and behavioural theories of endogenous financial cycles to CPE, this paper argues that the intensity of house price booms and busts is shaped by institutions that encourage speculative behaviour. In an empirical analysis for 23 OECD countries, the paper explores the role of speculation-encouraging institutions, credit permissiveness, welfare state regimes and macroeconomic policy as potential factors. We find that low capital gains taxes and strong landlord-protection policies that may push households onto the property ladder are linked to more intense house price booms and busts. |
| Keywords: | Comparative Political Economy, growth models, financial cycles, housing, house price cycles |
| JEL: | E32 N10 P50 R30 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2516 |
| By: | Jan Pedro Zeiss (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Valeria Jana Schwanitz; August Wierling; Timothy Peter Marcroft; Constantin von Beck; Arnaud Diemer (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne) |
| Abstract: | In view of the emerging social, environmental and economic crises, the degrowth movement questions the current growth paradigm. The fundamental criticism put forth by degrowth is that unlimited growth cannot be sustained within the planetary boundaries. Citizen-owned and democratically controlled Community Energy Initiatives (CEI) engage since many years in the sustainable energy transition. This paper investigates to what extent they align with the degrowth movement. Drawing from an inventory of over 10000 European Community Energy Initiatives, we go beyond the few case studies and theoretical think-pieces. We test potential alignment by empirically investigating indicators for the following degrowth imperatives: (1) Reduce environmental impact, (2) Re-orient economic priorities, (3) Reduce inequality (4) Foster democratic decision making, and (5) Re-localize production and consumption. The results suggest a strong alignment with the environmental impact reduction, democratic decision making, and relocalized production and consumption imperatives, while the alignment with the economic re-orientation and inequality reduction imperatives varies considerably across countries and types of initiatives. |
| Abstract: | Face aux crises sociales, environnementales et économiques émergentes, le mouvement de la décroissance remet en question le paradigme actuel de la croissance. La critique fondamentale formulée par la décroissance est qu'une croissance illimitée ne peut être maintenue dans les limites de la planète. Les initiatives énergétiques communautaires (IEC), détenues par des citoyens et contrôlées démocratiquement, s'engagent depuis de nombreuses années dans la transition vers l'énergie durable. Cet article étudie dans quelle mesure elles s'alignent sur le mouvement de décroissance. À partir d'un inventaire de plus de 10000 initiatives énergétiques communautaires européennes, nous allons au-delà des quelques études de cas et des réflexions théoriques. Nous testons l'alignement potentiel en examinant empiriquement les indicateurs des impératifs de décroissance suivants : (1) réduire l'impact environnemental, (2) réorienter les priorités économiques, (3) réduire les inégalités, (4) favoriser la prise de décision démocratique et (5) relocaliser la production et la consommation. Les résultats suggèrent un fort alignement sur les impératifs de réduction de l'impact environnemental, de prise de décision démocratique et de relocalisation de la production et de la consommation, tandis que l'alignement sur les impératifs de réorientation économique et de réduction des inégalités varie considérablement d'un pays à l'autre et d'un type d'initiative à l'autre. Traduit avec DeepL.com (version gratuite) |
| Keywords: | Community energy Energy cooperatives Degrowth Energy transition European Union |
| Date: | 2025–05–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05110749 |
| By: | Antoine Rieu (Université Gustave Eiffel, IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel) |
| Date: | 2025–06–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05119170 |
| By: | Jean-Luc Gaffard (Université Côte d'Azur, CNRS, GREDEG, France; OFCE Sciences Po.; Institut Universitaire de France) |
| Abstract: | Partir de la théorie de l'équilibre général est une étape utile de la réflexion sur la dynamique. Certes, parce qu'elle met l'accent sur l'interdépendance des agents et des marchés. Mais c'est aussi parce que c'est en se séparant des hypothèses relatives à l'information et à la production qui la fondent qu'il devient possible de reformuler le problème de la coordination. L'enjeu est d'explorer différents sentiers hors de l'équilibre au lieu de rechercher les conditions d'existence d'un équilibre vers lequel l'économie devrait converger. Il est de comprendre à quelles conditions les déséquilibres sont maintenus dans certaines limites et de définir ainsi ce que peut être un corridor de stabilité. Au lieu de fonder la macroéconomie sur des comportements individuels d'optimisation intertemporelle, il s'agit d'établir les formes d'organisation susceptibles de concourir à la viabilité de l'évolution, ce que l'on pourrait appeler le fondement macroéconomique de la microéconomie. L'économie décrite n'est plus une économie d'échange réel, c'est une économie monétaire de production. |
| Keywords: | capital, coordination, équilibre, information, monnaie, organisation |
| JEL: | D5 D8 E14 E30 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-31 |
| By: | Chaymae Elrhannami (UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)); Safae Aissaoui (UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)) |
| Abstract: | In a world marked by a constant increase in the number of users of social networks, which constantly impact all dimensions of social life, it is important to ask, how do these networks impact users' well-being. The aim of this article is to provide an adequate answer to this question through a conceptual analysis, drawing on two fundamental approaches to well-being: the Easterlin paradox and Sen's capability approach. When applied to the context of social networks, these two approaches yield two different results. Easterlin's perspective suggests a negative impact of social networks on well-being through the social comparisons they generate, coupled with the strengthening of material aspirations. Regarding Sen's approach, it assumes a favorable effect of social networks on well-being, conveyed by the opportunities and freedom of choice that these platforms provide, which can be translated into functionings and capabilities. The originality of this article lies in the fact that this subject has not been widely investigated, and it is the first article to apply the Easterlin paradox and Sen's approach to the context of social networks. We conclude that both perspectives are relevant for the analysis of the impact of social networks on well-being. Therefore, we consider that particular importance must be given by government authorities to establish necessary technological infrastructures to the fight against the digital divide, in order to ensure equal access to the opportunities that social networks offer. These measures must be accompanied by awareness-raising initiatives regarding the risks posed by these social platforms. |
| Abstract: | Dans un monde marqué par une constante augmentation du nombre d'utilisateurs des réseaux sociaux, qui ne cessent d'impacter toutes les dimensions de la vie en société, il est important de se demander, comment ces réseaux impactent le bien-être des utilisateurs. L'objectif de cet article est de fournir une réponse adéquate à cette question à travers une analyse conceptuelle, qui mobilise, deux approches fondamentales en matière de bien-être : le paradoxe d'Easterlin et l'approche des capabilités de Sen. Appliquées aux réseaux sociaux, ces deux approches produisent deux différents résultats. La perspective d'Easterlin suggère un impact négatif desdits réseaux sur le bien-être par le biais des comparaisons sociales qu'ils suscitent, couplées avec le renforcement des aspirations matérielles. Quant à l'approche de Sen, elle suppose un effet favorable des réseaux sociaux sur le bien-être, véhiculé par les opportunités et la liberté de choix que présentent ces plateformes, et qui peuvent se transformer en fonctionnements et en capacités. L'originalité de cet article réside dans le fait que ce sujet n'a pas été largement investigué, et que c'est le premier dans son genre qui applique le paradoxe d'Easterlin et l'approche de Sen au contexte des réseaux sociaux. Nous concluons que ces deux perspectives sont pertinentes pour l'analyse de l'effet des réseaux sociaux sur le bien-être. Nous envisageons ainsi qu'une importance particulière doit être accordée par les autorités gouvernementales à la mise en place des infrastructures technologiques nécessaires à la lutte contre la fracture numérique, en vue d'assurer un accès équitable aux opportunités que présentent les réseaux sociaux. Ces mesures doivent être accompagnées par la conduite d'actions de sensibilisation aux risques que présentent ces plateformes sociales. |
| Keywords: | Well-being, Social networks, Easterlin paradox, Sen’s capability approach, Bien-être, Réseaux sociaux, Paradoxe d'Easterlin, Approche des capabilités de Sen |
| Date: | 2025–05–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05062865 |
| By: | Savon Zakaria (Faculté des sciences juridiques, économiques et sociale-Souissi, Université Mohamed V) |
| Abstract: | The rise of Islamic banks in different countries worldwide can potentially complicate the implementation of monetary policy and affect its effectiveness. The purpose of our work is to address the question of the nature of the response of Islamic banking financing to the interest rate of monetary policy. Beyond this question, we are also interested in the factors that can shape the response of Islamic banking financing to conventional monetary policy. For the period between 2013 and 2022, across a panel of 12 countries, the results of the GMM approach first revealed the absence of an Islamic banking financing channel. They also showed that conventional monetary policy loses its effect on Islamic banks in dual banking systems where these banks have systemic importance. The development of Islamic finance, in turn, contributes to shielding Islamic financing from the effects of monetary policy. |
| Abstract: | L'essor des banques islamiques dans différents pays du monde peut potentiellement compliquer la mise en oeuvre de la politique monétaire et affecter son efficacité.L'objet de notre travail est de répondre à la question de la nature de la réponse des financements bancaires islamiques au taux d'intérêt de la politique monétaire. Au-delà de cette question, on s'intéresse également aux facteurs qui peuvent façonner la réponse du financement bancaire islamique à la politique monétaire conventionnelle. Pour la période entre 2013 et 2022, sur un panel de 12 pays, les résultats de l'approche GMM ont révélé d'abord l'absence d'un canal de financement bancaire islamique. Ils ont montré également que la politique monétaire conventionnelle perd d'effet sur les banques islamiques dans les systèmes bancaires duales où celles-ci ont une importance systémique. Le développement de la finance islamique concourt, à son tour, dans la prémunition des financements islamiques des effets de la politique monétaire. |
| Keywords: | Islamic banks, Transmission, Panel, GMM, Banques islamiques, politique monétaire, transmission, panel, Monetary policy, Banques islamiques politique monétaire transmission panel GMM Islamic banks monetary policy transmission panel GMM, GMM Islamic banks, monetary policy |
| Date: | 2025–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05124702 |
| By: | Cynthia Srnec (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université); Laura Aufrère (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique); Ana Sofia Acosta Alvarado (CEPN - Centre d'Economie de l'Université Paris Nord - Université Sorbonne Paris Nord) |
| Abstract: | Ce chapitre porte sur les formes de résistance collective à l'ubérisation du travail, à partir de l'analyse d'une initiative coopérative dans le secteur de la livraison à vélo : CoopCycle. À rebours des plateformes numériques capitalistes qui, depuis une décennie, ont généré de nouvelles formes de précarité déguisées en auto-entrepreneuriat, ce projet associatif vise à redonner aux livreurs la maîtrise de leur activité, des conditions de travail et des outils numériques qui les organisent. En s'appuyant sur une perspective sociologique qualitative, l'analyse explore comment CoopCycle redéfinit les frontières de l'activité de livraison à travers un modèle coopératif et démocratique, qui réintègre les travailleurs dans la décision collective et la propriété des moyens de production. Ce chapitre interroge ainsi les conditions de soutenabilité des alternatives à l'ubérisation du travail, fondées sur des principes d'économie responsable et de justice sociale. |
| Keywords: | Ubérisation, Gestion algorithmique, travail, livraison, coopératives, Communs numériques |
| Date: | 2025–05–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05104187 |
| By: | Gabriel, Nathan; Bell, Adrian V.; Smaldino, Paul E. |
| Abstract: | Individual social identities indicate group affiliations and are typically associated with group-typical preferences, signals that indicate group membership, and the propensity to condition actions on the social signals of others, resulting in group-differentiated interaction norms. Past work modeling identity signaling and coordination has typically assumed that individuals belong to one of a discrete set of groups. Yet individuals can simultaneously belong to multiple groups, which may be nested within larger groupings. Here, we introduce the generalized Bach or Stravinsky game, a coordination game with ordered preferences, which allows us to construct a model that captures the overlapping and hierarchical nature of social identity. Our model unifies several prior results into a single framework, including results related to coordination, minority disadvantage, and cross-cultural competence. Our model also allows agents to express complex social identities through multidimensional signaling, which we use to explore a variety of complex group structures. Our consideration of intersectional identities exposes flaws in naive measures of group structure, illustrating how empirical studies may overlook some social identities if they do not consider the behaviors that those identities function to afford. |
| Date: | 2025–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:w246t_v1 |
| By: | Krystian Bua; Giovanni Dosi; Maria Enrica Virgillito |
| Abstract: | This paper studies the finance-growth nexus in historical perspective. We employ a panel data model with interactive fixed effects and time-varying coefficients for a sample of advanced economies since the late 19th century. The model considers flexible specifications of heterogeneity and accounts for global common shocks that have likely shaped the finance-growth nexus over time. We present three main sets of results. First, our empirical analysis shows that the relationship between finance and growth is time-varying. Using our benchmark model, we estimate the time-varying slope coefficient of financial development and show that the finance-growth nexus has secularly evolved, thus challenging the mainstream assumption of a uniform association over time. Second, by accounting for global common shocks and their heterogeneous impact, we challenge the dominant narrative suggesting a consistently positive contemporaneous relationship between financial development and economic growth. Third, differences emerge when we distinguish between Schumpeterian finance (bank credit growth) and a more speculative type of finance (stock market growth). While both exhibit time-varying behaviors, the empirical evidence points to a substantially stronger and positive association between bank credit growth and economic growth, as opposed to stock markets, which tend to display a weaker or even negative relationship. Our results remain robust when we account for a range of alternative specifications and potential sources of variation. |
| Keywords: | Finance-growth nexus, Financial development, Economic growth, Semiparametric methods, Time-varying estimates, Long-panel |
| Date: | 2025–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2025/24 |
| By: | Nathalie Lazaric (GREDEG, CNRS, Université Côte d'Azur, France; University of Gothenburg, Sweden); Loubna Echajari (GREDEG, CNRS, Université Côte d'Azur, France; Tech-CICO Research Group - LIST3N; UTT - Université de Technologie de Troyes, France); Dorota Leszczyńska (IDRAC Business School, campus de Nice, France) |
| Abstract: | We explore potential changes to the organizational routines of Bordeaux winemakers faced with the need to reduce their use of pesticides – one of the grand challenges for agriculture. A routine dynamics lens suggests that the goal of sustainability can be achieved through various paths. The uncertainties related to reducing the use of chemical pesticides to encourage ecological biodiversity have resulted in efforts by viticulturalists, winemakers, and policy makers to find local solutions. Our results reveal a three-layered process of patterning and creating new routines. Our empirical findings contribute to theoretical work on routine dynamics and grand challenges. We show that there are several potential solutions to environmental problems based on new patterns and demonstrate that reflection is a major structural enabler of changes. Our research explores the ontological multiplicity of routines in the journey to achieving sustainability and the role of policy making in this process. |
| Keywords: | Routines Dynamics, Practices, Sustainability, Viticulture, Winemaking |
| JEL: | O33 R5 L21 L26 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-27 |